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Market Cap

US$6.3b

Last Updated

2021/04/12 22:08 UTC

Data Sources

Company Financials +

Executive Summary

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. More Details


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


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Share Price & News

How has Leggett & Platt's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LEG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

LEG

0.9%

US Consumer Durables

0.9%

US Market


1 Year Return

65.8%

LEG

133.5%

US Consumer Durables

57.9%

US Market

Return vs Industry: LEG underperformed the US Consumer Durables industry which returned 120.8% over the past year.

Return vs Market: LEG exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

LEGIndustryMarket
7 Day1.5%0.9%0.9%
30 Day-3.3%9.1%2.3%
90 Day6.6%27.2%6.3%
1 Year72.4%65.8%136.6%133.5%60.8%57.9%
3 Year19.1%6.2%76.4%69.3%64.5%53.9%
5 Year16.9%-1.6%109.8%94.4%120.9%96.4%

Long-Term Price Volatility Vs. Market

How volatile is Leggett & Platt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leggett & Platt undervalued compared to its fair value and its price relative to the market?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEG ($47.39) is trading below our estimate of fair value ($50.01)

Significantly Below Fair Value: LEG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LEG is poor value based on its PE Ratio (26x) compared to the US Consumer Durables industry average (16.6x).

PE vs Market: LEG is poor value based on its PE Ratio (26x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: LEG is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: LEG is overvalued based on its PB Ratio (4.5x) compared to the US Consumer Durables industry average (2.2x).


Future Growth

How is Leggett & Platt forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEG's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: LEG's earnings (10.6% per year) are forecast to grow slower than the US market (18.6% per year).

High Growth Earnings: LEG's earnings are forecast to grow, but not significantly.

Revenue vs Market: LEG's revenue (4.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: LEG's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LEG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Leggett & Platt performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEG has high quality earnings.

Growing Profit Margin: LEG's current net profit margins (5.8%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: LEG's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: LEG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LEG had negative earnings growth (-25.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (37.2%).


Return on Equity

High ROE: LEG's Return on Equity (17.8%) is considered low.


Financial Health

How is Leggett & Platt's financial position?


Financial Position Analysis

Short Term Liabilities: LEG's short term assets ($1.6B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: LEG's short term assets ($1.6B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: LEG's debt to equity ratio (136.4%) is considered high.

Reducing Debt: LEG's debt to equity ratio has increased from 86.3% to 136.4% over the past 5 years.

Debt Coverage: LEG's debt is well covered by operating cash flow (31.8%).

Interest Coverage: LEG's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Dividend

What is Leggett & Platt current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEG's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: LEG's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: LEG's dividends per share have been stable in the past 10 years.

Growing Dividend: LEG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.7%), LEG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEG's dividends in 3 years are forecast to be covered by earnings (57.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Karl Glassman (62 yo)

5.25yrs

Tenure

US$10,193,912

Compensation

Mr. Karl G. Glassman has been the Chief Executive Officer of Leggett & Platt, Incorporated since January 1, 2016, and its Chairman since January 1, 2020. Mr. Glassman served as President of Leggett & Platt...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD10.19M) is above average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LEG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: LEG's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LEG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Leggett & Platt, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leggett & Platt, Incorporated
  • Ticker: LEG
  • Exchange: NYSE
  • Founded: 1883
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$6.302b
  • Shares outstanding: 132.99m
  • Website: https://www.leggett.com

Number of Employees


Location

  • Leggett & Platt, Incorporated
  • No. 1 Leggett Road
  • Carthage
  • Missouri
  • 64836
  • United States

Listings


Biography

Leggett & Platt, Incorporated designs, manufactures, and markets engineered components and products worldwide. It operates through three segments: Bedding Products; Specialized Products; and Furniture, Flo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 22:08
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.